Frequently Asked Questions
Getting Started
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Click here and fill in the 8 simple questions!
Apply in confidence as we do not do a credit check at the time of applying.
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Yes. Rent to own is legal in the US, Canada, USA, Australia, UK and several other countries.
In the 2023 Special Issue of Macleans magazine: The Year Ahead, it is predicted that the Rent to Own Real Estate Model will take off.
Furthermore, the Canadian government is talking about Rent to Own as a viable option for Canadians to get into homeownership.
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Ohome Rent to Own Program does require a small down payment of 3% or $10,000, whichever is higher.
We will work with you to help you find ways to secure the funds for your home.
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To enter the program, Ohome Rent to Own Program requires a minimum of 3% of the home price or $10,000 whichever is higher.
If you are close to this amount please reach out and have a conversation with a member of our team.
We would be happy to help you come up with a plan to get to 3% or $10,000.
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Estimated 1.3% of purchase price and a portion of the lease goes towards building the home equity.
The exact number depends on the home price, initial down payment, lease term, and our overhead costs.
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A portion of lease payment goes towards your purchase.
The portions will be clearly defined for you.
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Our expert team members will ensure that you are set up for success at every step of the program.
They will assist you in finding the perfect home, building or repairing your credit score, saving for your down payment, obtaining your mortgage, and buying your home at the end.
We have the team, skills, and experience to help you succeed!
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We work with all lenders. Our goal is to get our tenant buyers qualified with an “A” lender by the successful completion of the program. If something happens and the A lenders deny you a mortgage, we have other mortgage options available for you.
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No. We pay the mortgage while you are in Ohome Rent to Own program so there is no interest charged to you.
Once you buy the house you will pay interest to your lender.
We charge an annual appreciation fee.
This is determined at the beginning of the program along with the final purchase price, all payments, and dates.
These will be outlined in your contract.
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You will purchase your home from us in a private sale.
Understanding Rent To Own
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We operate in all 50 states.
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Yes, in fact, we highly encourage it. You can paint, put up a fence, and make other improvements to change your house into a home you love. Also to note: When you improve the property in our program you win! We have already set the future purchase price for you, so any improvements that increase the value of your home goes directly into your pocket as sweat equity.
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Yes they are. We love animals and we believe they are part of your family too. There will be no need to move, and no potential for your application to be rejected based on your furry family members.
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You will purchase your home from us in a private sale.
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Buyback price is determined at the beginning of the program - no surprises!
The buyback price = purchase price + annual appreciation fee
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We calculate the portion as follow:
[(Future down payment + closing costs etc)] - (initial downpayment)] / (lease term)
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The fee shows that you are committed to the program before introducing you to our mortgage broker for assessment.
This fee will count towards the purchase price.
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Yes. As we are working from the information you provided us in your application, we can usually tell whether or not you will be accepted into the program by reviewing this information; however, in some instances, we may not be able to move forward. In these instances, we will return your commitment fee.
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$500 for homes at $150,000 - $300,000.
$1,000 for homes $300,000 and above.
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Yes, at any time you are allowed to make a lump sum payment towards your total option amount.
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We want you to succeed however we understand things can happen. Here are two options in this scenerioa:
Option 1: Walk away and lose deposit and credits built up.
Option 2: Sell the home and option to someone else. This is recommended over Option 1 as you could possibly recoup the equity you have built in the property over the years (or even make a profit).
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Commitment Deposit: $500-$1000. Non refundable. Goes towards your home equity. In rare circumstance that you don’t qualify, we refund in full.
Home Inspection fee: $1,000
Initial down payment: 3% of purchase price or $10,000, whichever is higher.
Monthly lease payment: Estimated 1.3% of purchase price and a portion of the lease goes towards building the home equity. The exact number depends on the home price, initial down payment, lease term, and our overhead costs.
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Absolutely! After you have purchased the home at the end of our program you are free to do as you wish with your home, including selling it.
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The agreed upon price must be honoured. Ohome cannot back out of the deal or change the price. You will have a legally binding contract with the first option to buy the house at the agreed upon price.
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We understand that sometimes life happens and you may require additional time to complete the program. We have the potential to extend any program to give you additional time if it is needed.
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Your lease payment is due at the beginning of each month.
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The property insurance is carried by the person on title.
The renter’s insurance is carried by you for the personal properties in the home.
Our program require you to have renter’s insurance.
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Yes. We require all tenant buyers to carry renters insurance so their contents are protected. Our home insurance policies do not cover your contents - they cover the physical building and property only.
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Ohome will be responsible to make the property tax payment annually. The total monthly payment for you, the tenant buyer, is inclusive of this expense.
Note: This expense will become yours once you purchase the home at the end of the program.
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Yes!
We help people repair their credit through an actionable plan and financial literacy.
Additionally, we have a financial literacy workshop available at a discount to all clients in our program.
We believe that you should have access to all of the tools for success, and will support you in any way we can to ensure that you have all of the information needed to be successful.
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Yes!
We work with self-employed people all of the time.
We can provide expert advice on how to make your business work for you so that you will qualify for a mortgage within 2-4 years.
Ohome experts understand the difficulties of being self employed and trying to obtain a mortgage.
We work with industry experts to ensure you know exactly what you need to do to become a homeowner through our program.
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We ask that you first pull your own credit (if you have not already done so).
This will not impact your credit score.
When our team does a full mortgage application on you there will be a hard hit on your credit.
We need to see your full credit history in order to ensure your success in our program.
Fortunately this is done at the beginning of the program, and therefore, will not negatively impact you in 2-4 years when you purchase your home.
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“Hard hits” are credit checks that appear in your credit report and count toward your credit score. Anyone who views your credit report will see these inquiries.
Examples of hard hits include:
an application for a credit card
some rental applications
some employment applications
“Soft hits” are credit checks that appear in your credit report but only you can see them. These credit checks don't affect your credit score in any way.
Examples of soft hits include:
requesting your own credit report
businesses asking for your credit report to update their records about an existing account you have with them
Choosing Your Home
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Yes you do!
We send you shopping with one of our qualified realtors to ensure that you get the perfect home for your family at the right price. Our realtors are local to each area so they are familiar with the markets and are experts in that area.
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Our program requires you to perform a home inspection before we finalize the purchase.
Although home inspections are limited in their scope, we have saved a few of our families from buying houses that had serious deficiencies. It is important to us that you get a safe and secure home, and that is why we work with professionals throughout the entire process.
We are not concerned about inexpensive and easy to fix deficiencies as these are to be expected in almost every home.
Your home buying process needs to be a great one, and we will do everything we can to ensure it is!
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Yes they are. We love animals and we believe they are part of your family too. There will be no need to move, and no potential for your application to be rejected based on your furry family members.
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We can buy you any house, on or off the market.
Once you have found the home you love, let us know that this is the house you choose.
We begin the application process!
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Yes, in rare circumstances there may be a home that we would not be comfortable moving forward to purchase.
If the neighborhood is unsafe or distressed.
If the home is located in a rural area.
If there are significant deficiencies in the home and you do not have the financial means or skills to repair these deficiencies.
Qualifying for Rent To Own
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The first step is to complete the online questionnaire.
It is only 8 quick questions!
Next step is setting up an appointment to answer any remaining questions you have. At this time, we can explain the program in more detail.
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No, in fact, many people in our program have overcome a credit issue such as a consumer proposal or bankruptcy.
We will look at your situation and determine whether or not we can help you obtain a mortgage by the end of our program.
Ohome Rent to Own program works well for people who may need a bit of extra time due to a past consumer proposal or bankruptcy.
This is an instance when Rent to Own may be a great option for you to get into or back into homeownership!
Understanding Your Credit
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A credit score is a numerical expression based on an analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bureaus.
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt.. Lenders use credit scores to determine who qualifies for a loan, at what interest rate and what credit limits.
Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques. Digital finance companies such as online lenders also use alternative data sources to calculate the creditworthiness of borrowers. (Source: wikipedia)
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Monitor your payment history
Use credit wisely
Increase the length of your credit history
Limit your number of credit applications or credit checks
Our team will go over all of this in greater detail.
We have many sources of educational information to ensure that you not only get a home at the end of your program but you increase your financial literacy, and hence, your ability to use credit wisely in the future.
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Item descriptionOne way to improve your credit score is to use different types of credit
Your score may be lower if you only have one type of credit product, such as a credit card.
It's better to have a mix of different types of credit, such as:
a credit card
a car loan
a line of credit
A mix of credit products may improve your credit score. Make sure you can pay back any money you borrow. Otherwise, you could end up hurting your score by taking on too much debt.
You deserve to own
Rent to Own can be your solution to home ownership.